Question 1 The fundamental qualitative characteristics of financial information are: A Relevance and faithful representation B Relevance and comparability C Faithful representation and comparability D Verifiability and understandability Question 2 The enhancing qualitative characteristics of financial information include: A Relevance and faithful representation B Comparability and understandability C Relevance and timeliness D Understandability and faithful representation Question 3 Entity X controls an overseas entity Y. Because of exchange controls, it is difficult to transfer funds out of the country to the parent entity. X owns 100% of the voting power of Y. How should Y be accounted for? A It should be excluded from consolidation and the equity method should be used. B It should be excluded from consolidation and stated at cost. C It should be excluded from consolidation and accounted for in accordance with IAS 39. D It is not permitted to be excluded from consolidation because control is not lost